California's New Fuel Tax

By: Barb Zearley / June 14, 2018

After 23 years without a tax increase, California’s Senate has approved a new bill that will increase fuel taxes to support the overhaul of the California road infrastructure. According to the LA Times,

  • The legislation, for which final details were unveiled last week, would raise the base excise tax on gasoline by 12 cents per gallon, bringing it to 30 cents.
  • Another variable excise tax would be set at 17 cents. The excise tax on diesel fuel would jump 20 cents per gallon and the sale tax on diesel would go up four percentage points.
  • Electric cars would pay a $100 annual fee.
  • The package also creates a new, annual vehicle fee ranging from $25 for cars valued at under $5,000 to $175 for cars worth $60,000 or more.

The article from the LA Times goes on to say, “About $34 billion of the first $52 billion would go to repairing roads, bridges, highways and culverts, with most of the money split 50-50 between state and local projects. Another $7 billion over the first decade would go to mass transit projects. Other money would fund improvements to trade corridors, including the roads serving the ports of Los Angeles and Long Beach, and would go toward reducing congestion on the most clogged commuter routes.”  This is a large step as far as tax increases go and therefore has been met with a great deal of discourse among Californians. According to Reuters, “Republicans condemned the increases, saying the state’s transportation taxes and fees are already among the highest in the nation. They call the measure the largest gasoline tax in California’s history. “Californians got a lemon of a gas and car tax hike today,” Senate Republican leader Patricia Bates said. The average motorist in California, a state renowned for its car culture, will see transportation costs rise by about $10 a month, the bill’s supporters say.” The tax increase is slated to go into effect in November of this year.

 map tax

www.taxfoundation.org

http://www.latimes.com/politics/essential/la-pol-ca-essential-politics-updates-senate-on-gas-1491508666-htmlstory.html

https://www.reuters.com/article/us-california-gastax/california-enacts-52-billion-fuel-tax-hike-for-road-bridge-repairs-idUSKBN17U305

 

 


Categories: gas tax, fuel prices, transportation


Barb Zearley

Written by

Barb Zearley

With 15 years of industry experience, I am self-motivated, customer-oriented and attentive to achieve customer goals and satisfaction.


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us